Conditions for Coop. With Total

Conditions for Coop. With TotalConditions for Coop. With Total

French major Total, which is in advanced negotiations to build a major petrochemical complex in Iran, should meet two prerequisites to operate in the country's energy sector, the head of National Petrochemical Company said.

"Total not only has to use both natural gas and liquefied fuels as feedstock [for petrochemical projects] but also develop downstream sector along with the upstream petroleum industry,” Marzieh Shahdaei was also quoted as saying by Mehr News Agency on Saturday.

According to the official, a high-ranking delegation of Total executives is due to visit Tehran later this month to finalize the petrochemical agreement.

On the first condition, Shahdaei stressed that the French giant should utilize a combination of ethane and liquefied feedstock such as gas condensates or naphtha to produce petrochemical products in Iran.

The two sides signed a memorandum of understanding in March, based on which the petrochemical complex will include a steam-cracker unit in a coastal area and receive ethane, naphtha, liquefied petroleum gas and other liquefied gases as feedstock.

Noting that negotiations are still underway on the type of feedstock for the proposed petrochemical project, she said the detail of the project, including its production capacity, is still unclear.

Shahdaei added that the exact location of the complex is yet to be determined, but the plant is poised to be established in one of Iran's southern petrochemical hotspots, including Mahshahr or Asalouyeh.

Total has been quick in cementing its position in Iran's energy industry after nuclear-related sanctions against the country were lifted in January.

The company has signed an MoU to conduct technical surveys on the giant South Azadegan Oilfield. It also became one of the first European companies to buy oil from the Islamic Republic in the post-sanctions period.